About Company
Aditya Infotech Limited (AIL), operating under the well-recognized ‘CP PLUS’ brand, is the largest Indian-owned company in the video security and surveillance market.
AIL operates as both a manufacturer and a distributor. It holds an exclusive distribution agreement for India with Dahua Technology, a global leader in the sector. The sale of Dahua products is a major revenue stream for AIL, accounting for approximately 25% of its FY25 revenues.
AIL recently acquired the remaining 50% stake in its joint venture with Dixon Technologies (India) Limited, making AIL Dixon Technologies Private Limited a wholly-owned subsidiary.
Company business model
The company’s offerings include AI- and IoT-enabled technologies, integrated security systems, and Security-as-a-Service, catering to diverse sectors like banking, healthcare, defense, retail, and law enforcement. AIL’s business model involves both manufacturing and trading of CP PLUS products, as well as the distribution of Dahua products, commanding a combined market share of approximately 25% in India with over 2,900 SKUs in FY25.
Market Share (FY25): 20.8% of the Indian video surveillance market in terms of revenue.
Market Position:
- 1st Indian-owned company in the sector.
- 2nd overall player in the Indian market, after Prama Hikvision.
How the Company Earns
- Hardware mark-up: bulk procurement from ODMs (notably Dahua) and in-house assembly; price mark-up 12-18% to channel partners.
- Design-Build projects: turnkey safe-city, traffic and enterprise solutions bring mixed EPC and software revenue.
- Services & AMC: post-warranty maintenance, monitoring and analytics; small but rising (currently 3% of revenue).
Revenue Segmentation
Brand-wise Contribution (FY25):
- CP PLUS Brand: 68.70% of Revenue from Operations.
- Dahua Brand: 24.65% of Revenue from Operations.
- Others: 6.65% of Revenue from Operations.
By Sales Channel (Fiscal 2025)
- Distributors: 79.58%
- System Integrated Operations / Projects: 16.17%
- Online and e-commerce: 2.47%
- Retail and others: 1.78%
Product portfolio
AIL’s portfolio is classified into three main categories:
- Professional Range: High-end products for enterprise and commercial use, including AI Network Cameras, NVRs, ANPR cameras, and Thermal Solutions.
- Consumer Range: Products for home and small business use, such as Smart Wi-Fi cameras (EzyFi), 4G cameras, Dash Cams (CarKam), and Video Doorbells.
- Surveillance Aligned Products: Ancillary products required to build a complete security system, including PoE Switches, DVR/NVR Racks, and Power Supplies (SMPS).
Raw Material suppliers
Operational Strengths
Extensive Market Reach:
AIL has a strong pan-India presence, with its products available in over 550 cities. As of FY25, the company operates through 41 branch offices and 13 RMA (Return Merchandise Authorization) centers. Its distribution network includes over 1,000 distributors (79.6% of sales), more than 2,100 system integrators (16.2% of sales), and a growing e-commerce and retail presence (4.3% of sales).
Large Manufacturing Facility:
AIL’s manufacturing facility in Kadapa, Andhra Pradesh, is the third-largest in the world, with a capacity of 17.2 million units per annum. The facility operates at approximately 77% utilization (as of FY25), indicating room for growth.
Expand SMT lines (₹450 million) to lift capacity to 25 million units by FY 2027.
R&D and Technology Collaborations:
The company has an R&D center in Noida with around 86 employees. It collaborates with leading technology firms to develop customized solutions.
Key partnerships include:
- A previous JV with Dixon Technologies, whose stake AIL acquired in September 2024. Dixon also subscribed to 7.3 million equity shares of AIL.
- A collaboration with L&T Semiconductor to develop indigenous IP SoCs and AI-driven CCTV products.
- A partnership with VVDN Technologies for product engineering and design.
- Exclusive distribution rights for Dahua products in India, which contribute to approximately 25% of FY25 revenues.
Subsidiaries
1. AIL Dixon Technologies Private Limited
- Its core business is the manufacturing and selling of a wide range of security and surveillance systems and components.
Products Dealt With:
- The subsidiary manufactures key hardware products, including:
- CCTV Cameras (both analog and IP)
- Digital Video Recorders (DVRs)
- Network Video Recorders (NVRs)
- Alarms and other related electronic security appliances.
2.Shenzhen CP Plus International Ltd
This subsidiary, based in Shenzhen, China, functions as a supply chain and procurement support entity.
Products/Services Dealt With:
- Its role is focused on the procurement side of the value chain. It is responsible for:
- Sourcing and procuring critical raw materials, spare parts, and components.
- Providing quality control services, testing, and analysis on these sourced components.
Industry Analysis
Global
- Frost & Sullivan estimates the global video surveillance market to be valued at $32.9 billion in FY 2024.
- The market (in terms of revenue) is estimated to grow by CAGR of 13.3% from FY 2024 till FY 2029 as against a mere CAGR 2.8% from FY 2020 to FY 2024.
USA
- Frost & Sullivan estimates the USA video surveillance market to be sized at $8.1 billion. in FY 2024 and likely to touch $14.4 billion. by the end of FY 2029.
- Revenue growth is projected at 12.3% during the five-year period.
- In terms of volume, the number is expected to grow from 249.5 million units in FY 2024 to 460.5 million units in FY 2029.
Europe
- According to Frost & Sullivan, the European video surveillance market is estimated to become $15.3 billion.
- By the end of FY 2029. Currently, the market stands at $7.9 billion.
- In terms of volume units, the market is expected to grow close to 2x in the next 5 years.
China
- China remains on the top for the most surveilled countries in the world. In-fact, the country is home to nine out of the top 10 most surveilled cities globally.
- Chinese video surveillance market to be sized at $6.7 billion. in FY 2024 and estimated to grow at CAGR 13.6% till FY 2029.
India
- India reached $1.2 billion. in FY 2024 with growth recorded at CAGR 4.3%.
- Frost & Sullivan estimates that the video surveillance market in India is experiencing a surge, with a market value estimated at ₹ 96.7 billion during FY 2024.
- This growth is expected to continue at a CAGR of 15.6% annually until FY 2029, with the market size estimated to reach ₹ 199.8 billion by then.
- The number of video surveillance units sold is also positioned for significant growth, with an estimated volume of 35.9 million units in FY 2024 expected to nearly double by FY 2029, reaching 76.8 million units.
Camera market size (in ₹ billion) and volume (in million units), India,
IP camera
- India has experienced substantial growth over the years, with consistent increases in both volume and revenue.
- In FY 2024, the volume of IP cameras reached 17.0 million units, generating a revenue of ₹ 42.3 billion.
IP camera type market size (in ₹ billion) and volume (in million units), India,
Analog camera
- In India experienced a year of decline in both volume and revenue.
Retail
- As per Frost & Sullivan, the retail video surveillance market size and volume
- India would experience a strong growth trend till FY 2029.
- Sales volume is likely to increase from 4.7 million units in FY 2020 to an estimated 13.1 million units in FY 2029.
- Revenue is likely to grow from ₹ 13.4 billion. in FY 2020 to a projected ₹ 34.1 billion.
- FY 2029. This represents a growth rate of 16.7% in volume and 15.9% in revenue for the period between FY 2024 and FY 2029.
Retail establishments market size (in ₹ billion) and volume (in million units), India
Key Risk
- In Fiscal 2025, the single largest supplier (AIL Dixon) accounted for 51.92% of the company’s material costs.
- Dependence on single manufacturing unit in Andhra Pradesh
- A portion of the company’s revenue comes from one-time projects, meaning it has to constantly find new business to maintain its revenue levels.
- The company’s long-term bank facilities were downgraded from ‘CARE A- Stable’ to ‘Care BBB+; Stable’ as of March 31, 2025.
- The Holding Company is also engaged in trading of security and surveillance equipment and components manufactured by Dahua Technologies Group. And it contributes around 25% of revenue .
- Aditya Khemka (Managing Director):
- Fixed Component:
- Salary: ₹5.35 million per month.
- Variable (Performance-Linked) Component: This is the most significant part of his remuneration.
- 0.40% on total net sales/turnover.
- An additional 0.40% on incremental net sales/turnover compared to the previous year.
Balance sheet Risk
- 65% OF non-current assets is in goodwill (534.9cr)
- Trade Receivables: Increased by 41% to ₹10,39. Cr
- Inventories: Grew by 71% to ₹8,70.5cr.
- Property, Plant, and Equipment ₹21.4.cr to ₹1,31.7cr
Dahua Brand
- Dahua is one of the biggest and most advanced security camera companies in the world based in China.
- The business relationship between Aditya Infotech and Dahua began over 16 years ago.Aditya Infotech is the official and only company that can distribute Dahua’s products in India.
- They are experts in making high-tech security products like CCTV cameras, recorders, and other surveillance systems.
- Their products are sold globally in over 180 countries.
Disclosure:- Not Invested